₦airaland Forum

Beaf:
This is by far the saddest bit of the article. How can a nation so blessed see its riches cornered by a few greedy and corrupt bastar'ds?

Stuff like that makes me lean toward outright removal of the oil subsidy. Firstly, lets understand that "oil subsidy" means many things, but boils down to paying people to import fuel that is refined abroad, while destroying the refineries at home.

It is noteworthy, that in their times, IBB and Abacha built personal refineries in Ivory Coast, Benin Republic and Sierra Leone, so that they could benefit from the "oil subsidy."

As refinery opens, Niger joins club of oil producers

(AFP) – 1 day ago

OLELEWA, Niger — Niger officially became an oil producer Monday with the opening of a refinery run by the state and a Chinese company.

Niger's President Mahamadou Issoufou and China National Petroleum Corporation boss Jiang Jiemin cut the red ribbon at the new plant at Olelewa in the east, near the country's second city Zinder.

"Niger has entered the era of oil production," Issoufou said as he inaugurated the refinery decorated in the colours of the two countries.

"Niger, which has up to now imported its petrol, will become self-sufficient ,  and then start exporting."

Energy Minister Foumakoye Gado said locally produced fuel will be sold at the pump starting Thursday at a price of 570 CFA francs (0.86 euro cents) per litre of petrol -- down from the current 679 CFA francs (1.02 euros).

The price of diesel will drop to 577 CFA francs from 655 CFA francs.

Long considered unprofitable by Western prospectors, the extraction of crude oil started in September in Agadem in the Niger desert, from where it is piped to Olelewa some 460 kilometres (290 miles) away for refining.

Niger expects to produce about 20,000 barrels of fuel a day, initially just for the local market.

Oil reserves in Niger, one of the world's poorest countries despite being a top uranium producer, are estimated at 480 million barrels.

The contract signed by then-president Mamadou Tandja in 2008, two years before he was deposed in a military coup, awards 40 percent of production to the government of Niger and 60 percent to the Chinese company.

Junta chief General Salou Djibo handed over power to Issoufou, an elected civilian president, in April.

Non-governmental bodies have asked Issoufou's government to review the contract, alleging a lack of transparency.

"The most important thing is that our oil resources benefit the people of Niger, especially the majority in the rural areas who need education, health care and roads," Issoufou said at the ceremony.

Since 2006, China has reinforced its economic ties with the former French colony, helping it tap its vast uranium wealth in the northern Agadez region.

Agadez is under threat from Al-Qaeda in the Islamic Maghreb (AQIM), which is holding four hostages abducted from a site there of French nuclear energy giant Areva in September last year.

A Nigerian delegation representing President Goodluck Jonathan looked on in awe yesterday as Niger Republic’s brand new oil refinery was commissioned at Zinder, close to the Nigerian border. The refinery will immediately satisfy Niger Republic’s domestic requirements and leave a huge surplus for export, with one very likely destination---Nigeria.


The Soraz refinery near Zinder, some 900 km (560 miles) east of the capital Niamey, is a joint venture with China. Its 20,000 barrel-per-day capacity will be fed entirely by oil from the newly-launched Agadem oilfield, a further 700 km east.


The Soraz refinery will initially draw crude from three Agadem wells with reserves totalling 480 million barrels. Local consumption of refined products accounts for 7,000 barrels a day with plans to export the rest.

The Soraz refinery is 60 percent-owned by Chinese state oil company CNPC and 40 percent by Niger. It follows a $5 billion deal signed between the two in 2008 to concurrently build the plant and develop crude oil from Agadem.

CNPC President Jiang Jiemin said CNPC and the Nigerien government had agreed to begin a second phase of the project involving the construction of a pipeline to export crude oil to foreign markets. The pipeline is expected to be built by 2013 to 2014.

It was celebration galore in the Republic yesterday as the commissioning ceremony was taking place. The refinery was built by the Chinese following discovery of oil in the country’s far north. Zinder, the site of the refinery, is the capital of Damagaram region.

However, there were pockets of tension in the country due to a mild resentment over the pricing of petrol, which protesters last Sunday said was high since oil is now being produced and refined in the country.

Niger Republic’s president Alhaji Issoufou Mahamadou, however went ahead to commission the refinery amidst pomp and pageantry with dignitaries from all over the world in attendance.  Katsina State governor Alhaji Ibrahim Shehu Shema represented President Jonathan while the Emirs of Daura and Gumel as well as many Nigerian business personalities were present. Katsina business mogul Alhaji Dahiru Barau Mangal signified his intention to invest in Niger’s oil project, especially in transportation of refined petroleum products from Zinder to Nigeria and other neighbouring African countries.

President Issoufou Mahamadou did not speak at the event in line with the country’s protocol, but he led a number of dignitaries right inside the refinery to officially commission it.

The drilling of oil wells in Diffa region and building of the refinery all began in February 2008 by a Chinese firm, SORAZ Engineering Company after the country’s then president, Alhaji Tanja Mahamadou, laid its foundation stone.

Speaking at length about the project, Niger’s Minister of Energy and Petroleum Resources Foumakoye Gado said with the commissioning of the refinery, the country has now joined the league of the world’s oil producing countries.

He said Niger’s search for oil began in 1958 and in 1962, oil exploration started with the digging of nine oil wells but the project was eventually abandoned because oil then was cheap and the quantity was also not that much. The construction of the refinery and digging of the oil wells,  according to him, all started three years ago and he thanked the contractors for completing the projects in good time.

The minister said succour has now come their way with the multi-million dollar project as the Nigerien government will embark on several projects that will improve the lives of its people through the revenue generated from the oil proceeds. He said an agreement had already been signed between the country and a construction firm for the construction of about 150km road from Diffa to the oil town of Gegime to facilitate easy movement of people and products.

Earlier before he commissioned the refinery, President Issoufou Mahamadou decorated five Chinese nationals whose firms handled the historic projects with the country’s national honours for a job well done.


DAILY TRUST

As refinery opens, Niger joins club of oil producers

(AFP) – 1 day ago

OLELEWA, Niger — Niger officially became an oil producer Monday with the opening of a refinery run by the state and a Chinese company.

Niger's President Mahamadou Issoufou and China National Petroleum Corporation boss Jiang Jiemin cut the red ribbon at the new plant at Olelewa in the east, near the country's second city Zinder.

"Niger has entered the era of oil production," Issoufou said as he inaugurated the refinery decorated in the colours of the two countries.

"Niger, which has up to now imported its petrol, will become self-sufficient ,  and then start exporting."

Energy Minister Foumakoye Gado said locally produced fuel will be sold at the pump starting Thursday at a price of 570 CFA francs (0.86 euro cents) per litre of petrol -- down from the current 679 CFA francs (1.02 euros).

The price of diesel will drop to 577 CFA francs from 655 CFA francs.

Long considered unprofitable by Western prospectors, the extraction of crude oil started in September in Agadem in the Niger desert, from where it is piped to Olelewa some 460 kilometres (290 miles) away for refining.

Niger expects to produce about 20,000 barrels of fuel a day, initially just for the local market.

Oil reserves in Niger, one of the world's poorest countries despite being a top uranium producer, are estimated at 480 million barrels.

The contract signed by then-president Mamadou Tandja in 2008, two years before he was deposed in a military coup, awards 40 percent of production to the government of Niger and 60 percent to the Chinese company.

Junta chief General Salou Djibo handed over power to Issoufou, an elected civilian president, in April.

Non-governmental bodies have asked Issoufou's government to review the contract, alleging a lack of transparency.

"The most important thing is that our oil resources benefit the people of Niger, especially the majority in the rural areas who need education, health care and roads," Issoufou said at the ceremony.

Since 2006, China has reinforced its economic ties with the former French colony, helping it tap its vast uranium wealth in the northern Agadez region.

Agadez is under threat from Al-Qaeda in the Islamic Maghreb (AQIM), which is holding four hostages abducted from a site there of French nuclear energy giant Areva in September last year.

ak47mann:
A Nigerian delegation representing President Goodluck Jonathan looked on in awe yesterday as Niger Republic’s brand new oil refinery was commissioned at Zinder, close to the Nigerian border. The refinery will immediately satisfy Niger Republic’s domestic requirements and leave a huge surplus for export, with one very likely destination---Nigeria.


The Soraz refinery near Zinder, some 900 km (560 miles) east of the capital Niamey, is a joint venture with China. Its 20,000 barrel-per-day capacity will be fed entirely by oil from the newly-launched Agadem oilfield, a further 700 km east.


The Soraz refinery will initially draw crude from three Agadem wells with reserves totalling 480 million barrels. Local consumption of refined products accounts for 7,000 barrels a day with plans to export the rest.

The Soraz refinery is 60 percent-owned by Chinese state oil company CNPC and 40 percent by Niger. It follows a $5 billion deal signed between the two in 2008 to concurrently build the plant and develop crude oil from Agadem.

CNPC President Jiang Jiemin said CNPC and the Nigerien government had agreed to begin a second phase of the project involving the construction of a pipeline to export crude oil to foreign markets. The pipeline is expected to be built by 2013 to 2014.

It was celebration galore in the Republic yesterday as the commissioning ceremony was taking place. The refinery was built by the Chinese following discovery of oil in the country’s far north. Zinder, the site of the refinery, is the capital of Damagaram region.

However, there were pockets of tension in the country due to a mild resentment over the pricing of petrol, which protesters last Sunday said was high since oil is now being produced and refined in the country.

Niger Republic’s president Alhaji Issoufou Mahamadou, however went ahead to commission the refinery amidst pomp and pageantry with dignitaries from all over the world in attendance. Katsina State governor Alhaji Ibrahim Shehu Shema represented President Jonathan while the Emirs of Daura and Gumel as well as many Nigerian business personalities were present. Katsina business mogul Alhaji Dahiru Barau Mangal signified his intention to invest in Niger’s oil project, especially in transportation of refined petroleum products from Zinder to Nigeria and other neighbouring African countries.

President Issoufou Mahamadou did not speak at the event in line with the country’s protocol, but he led a number of dignitaries right inside the refinery to officially commission it.

The drilling of oil wells in Diffa region and building of the refinery all began in February 2008 by a Chinese firm, SORAZ Engineering Company after the country’s then president, Alhaji Tanja Mahamadou, laid its foundation stone.

Speaking at length about the project, Niger’s Minister of Energy and Petroleum Resources Foumakoye Gado said with the commissioning of the refinery, the country has now joined the league of the world’s oil producing countries.

He said Niger’s search for oil began in 1958 and in 1962, oil exploration started with the digging of nine oil wells but the project was eventually abandoned because oil then was cheap and the quantity was also not that much. The construction of the refinery and digging of the oil wells, according to him, all started three years ago and he thanked the contractors for completing the projects in good time.

The minister said succour has now come their way with the multi-million dollar project as the Nigerien government will embark on several projects that will improve the lives of its people through the revenue generated from the oil proceeds. He said an agreement had already been signed between the country and a construction firm for the construction of about 150km road from Diffa to the oil town of Gegime to facilitate easy movement of people and products.

Earlier before he commissioned the refinery, President Issoufou Mahamadou decorated five Chinese nationals whose firms handled the historic projects with the country’s national honours for a job well done.


DAILY TRUST

Kobojunkie:
^^^ a vote on subsidy removal? that'll be the day! ROFLMAO!!
https://images-4.findicons.com/files/icons/1039/manto/128/grin.png

shirleyz:
A big NO to the subsidy removal, after the removal, what will happen to the money, another round of stories will start again and nobody will be able to account for how the money was spent. The subsidy has not been removed and prices are skyrocketing already, i only wonder what will happen when God Forbid, the subsidy is removed.

There is no justification for the removal abeg.

all4naija:
^^^
Do you ever get it right? This greedy men will sell the petroleum for high price offered by those neighboring countries thereby causing artificial scarcity, which you and I will complain there is not enough to meet demand at home. See it from that perspective, if you couldn't see those importing the products making huge profit to the detriment of the national income.

aribisala0:
doing what??

oil prices in norway are twice what they are in the US probably the dearest in the world
britain another oil producer is quite expensive too.

it is not prudent to dash the oil to your citizens because you are a producer.

let us imagine that oil is a resource that belongs to us and those nigerians that have not yet been born then we should invest it not just waste it . we would do well to copy the likes of norway not the likes of libya or venezuela

ghostofsparta:
@bellante
Must Jensinmi know why the pump price is high in UK and US? Even if he gave an answer to such silly question, you will still ask why do they experience fuel scarcity in UAE? Jensimi gave us an intel by analyzing how the Nigerian oil sector is been manipulated by some goons. In order to mask your daftness because you couldn't grasp jensimi's analyses you decided to write some unintelligible reply when you wrote:

''Since we are willing to pay high prices and get regular supply of electricity and didnt mind paying high tariff charges for telecommunication before
competition which is also
needed in d downstream sector crashed d prices and is now being enjoyed by all. . .I think we should deregulated'

you wrote all that pointless words just to let Jensimi know that his argument is

''out of fashion!!!!''

@ekt_bear
How is jensimi wrong? I'm sure you must have a better explanation regarding the issue, let's hear.

@jensimi
Your analyses makes perfect sense. Can you please provide some elaborate analyses explaining why Nigerian roads and streets are horribly bad, is it the fault of foreign contractors such as Julius Berger, Arab contractor, etc? or is it the local govenment chairmans, FG or state government? Also why are things ridiculously expensive in Nigeria? Is it because the number of importation far exceed that of exportation? Why is the Naira weak and valueless, i.e. low purchasing power? And lastly why can't they be a stable and steady electricity supply in this British amalgamation called Nigeria? Thanks.s perfect sense. Can you please provide some elaborate analyses explaining why Nigerian roads and streets are horribly bad, is it the fault of foreign contractors such as Julius Berger, Arab contractor, etc? or is it the local govenment chairmans, FG or state government? Also why are things ridiculously expensive in Nigeria? Is it because the number of importation far exceed that of exportation? Why is the Naira weak and valueless, i.e. low purchasing power? And lastly why can't they be a stable and steady electricity supply in this British amalgamation called Nigeria? Thanks.

dayokanu:
An escort in Manhattan would collect $500 in Thailand you can screw a whole village with that amount

Below is my response to the following thread

Nigeria Spends N72.8bn Monthly On Fuel Subsidy
https://www.nairaland.com/nigeria/topic-746266.0.html#msg9024300


I agree with Kobojunkie and strongly disagree with ekt_bear and friends.


This is all basic mathematics. Anyone who went to school will work out that this fuel subsidy noise is a LIE or at best gross exaggeration.

FIRST OF ALL, ANYONE WHO TELLS YOU THAT NIGERIA SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.

This is basic mathematics and a fact.
They can claim that the give out $500 million in subsidy money monthly. That is between them and their thieving companies and friends.

Let's break it down:

Nigeria produces crude oil. Other countries produce crude oil.
Nigeria has 4 refineries with total installed capacity of 445,000 barrels per day (or whatever the NNPC claims nowadays).
Nigeria's refineries are not working at full capacity.
Crude oil is refined to PMS (Premium Motor Spirit) aka Petrol.
Nigerians use PMS to fuel vehicles, generators and other things.
PMS is traded internationally at a particular rate that varies.
Other countries that produce Crude oil refine it and sell to their citizens at whatever rate they please (irrespective of international rates).
Nigeria monthly PMS consumption = Locally refined + Imported refined (at International Rates)
Nigeria sells PMS to citizens for N65/litre
Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

Example = Importers buy fuel internationally today from Venezuela at N120/ litre for example, they bring into Nigeria and sell for N65/litre. In order for said Importers not to lose N55/litre, the Nigerian Government pays N55/litre balance. This balance is the SUBSIDY.

Problem 1: Due to corruption, Nigerian officials collude with Government officials and claim to have imported more fuel than they actually bring in.

Example: Mr. Otedola's company may only bring in 1 million litres per day but claim to bring in 2 million litres per day. And like in previous example, The Government officials will pay N110 million per day (N 55/litre subisdy x 2 million litres) instead of N55 million (N55/litre subsidy x 1 million litres).

Problem 2: Due to corruption, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to buy the Locally refined and claim that the said quantities of petroleum where in fact imported into the country at international rates.

Example: Ms. Deziani's accomplices may buy 1 million litres per day of petroleum from the NNPC for N65 million and then claim that this quantity was bought at N120 million internationally (N120/litre international rate x 1 million) . They would then proceed to collect N55 million (N120 milion - N65 million) from the Nigerian Government as subsidy payment.

Problem 3:Due to corruption and inadequate monitoring, Fuel importers collude with Nigerian National Petroleum Corporation (who by the way are in charge of the locally refined) and Government officials to fraudulently under-report the quantities of locally refined PMS so they can purchase the more from the local refineries and claim to have imported said quantities (problem 2)

Example: The NNPC may claim to refine only 2 million litres per day when it in fact refines 4 million litres per day. The remaining 2 million litres would then be sold to their partners in crime at N65/ litre. These partners will proceed to sell these quantities to the Nigerian populace while demanding N55 subsidy per litre from the Nigerian Government after claiming that this 2 million litres/day were imported from Venezuela or other country. This example is highlighted by the inability of the NNPC to give account of the actual quantities it refines daily.


Therefore taking into consideration that

Subsidy = Amount paid to PMS importers for difference between International Rates for Imported Refined and N65/litre.

and the extent of problems 1, 2, and 3, it becomes easy to see why the true cost to Nigeria of the fuel subsidy may not exceed $100 -$150 million/ month.

Once again, I put forward that

ANYONE WHO CLAIMS THAT NIGERIA TRULY SPENDS $500 million ON FUEL SUBSIDIES MONTHLY IS A THIEF.


Why do Nigerians need a fuel subsidy??

Do average Nigerians really benefit from a fuel subsidy??

Interesting questions. Let me rephrase that.

Do average Nigerians benefit from buying PMS at N65/litre instead of N120, N130, or N140/litre
I think a monkey can answer that.

1. The average Nigerian buys PMS to fuel his/her car i.e N500 daily.
2. The average Nigerian takes public transport in vehicles that use PMS at certain amount i.e N50 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N1000 daily.
4. The average Nigerian buys food (bread, vegetables, fish) which is transported across the country in Vehicles that use fuel.

No subsidy equals

1. The average Nigerian needs PMS worth N1000 for his/her car daily.
2. The average Nigerian takes public transport at a new amount i.e N80 per trip.
3. The average Nigerian buys PMS to fuel his generator i.e N2000 daily
4. The average Nigerian buys food (bread, vegetables, fish) at a much higher price.

it doesn't take a genius to figure out that the average Nigerian benefits significantly from the lower cost of PMS.

It would be hard to find a Nigerian in Nigeria who wants the price of PMS to rise. It is a slap in the face of average Nigerians for ekt-bear and friends to claim that removing the subsidy will not have a tremendous negative impact on Nigerians. It is easy to sit in the U.S.A and claim that doubling the price of PMS in Nigeria will have no impact on the populace. Akin to saying an increase in gasoline prices in the U.S.A to $7/gallon today will have no significant effect on the populace.

Does corruption allow unscrupulous individuals to benefit from the subsidization of PMS?? Yes.
But why does the average Nigerian have to get shafted for this?? Why not tackle corruption instead??

Solutions.

A. Ascertain the true quantities of PMS locally produced daily.
B. Ascertain the true total quantities of PMS consumed daily nationwide.

Subract A from B and arrive at the true quantity of PMS imported at international rates (This value will then be subsidized)

By tackling corruption, the cost of subsidization can be brought down to no more than $100 million per month.


Solution Part 2 - By bringing refineries to optimum operating capacity and building new refineries.
Locally refined PMS can exceed Locally consumed PMS.

Mythical Solution= Remove the subsidy and hope that the supposed $500 million/ month that is currently being used to compensate corrupt entities will translate into development and improvement for the average Nigerian.

The question now remains, does increasing the burden on the average Nigerian guarantee the resolution of the problem??


PS: Problem 4: Overestimating the total nationwide PMS consumption allows fuel importers and the NNPC to further perpetrate fraud.


Also, please note that selling locally refined PMS at N65/litre is still a profitable venture for the NNPC.



Thank you for reading.

mikealz:
my condelence to those family, lol,

p.s, am gonna just post my pic up, cuz i think am handsome, lol

horny4u:
I donot think the question is your acting or overeacting,



Next time someone is talking on the phone on a date : He / she is not taht into you.
He could not have been driving so bad  ah for you to have enjoyed the ride home   anyway Next time someone is talking on the phone while driving: tell them to park you want to buy barbecued plantain (Boli   ) as soon as you get down hail a taxi without looking back ( Life is precious)

Lagos's traffic is crazy its always fair to meet up on a first date instead of being picked up so that you can make sure he is there first before you arrive, ( 2) On a first date try not to get into his car except of cos you have bbed his plate number to your sister just in case you guys are taking a trip to okija shrine instead of Chinese.

As for the restaurant, life is flexible he took you to a cheap resturant after you told him you like chinese not Mr biggs and when he tried to kiss you, you ran, My dear we cannot be beggars and choosers, on a 1st date if he does not ask you where you will like to go then follow him to where he wants to take you to; Its actually a fantastic way to find out  bit of his character whether he is a stingy koinkoin

My point is if you make a man think without having a date you cannot eat Chinese then guess what he will think you cheap and will be looking for the fastest route to your P and the fastest route to take off after the P.

Anyway sha the above is if you want a serious relationship with the guy.

but  na confirmed playboy and you want to teach him a lesson as in , if  you just wanna wobia the guy of cos choose those eatery where they allow take away and bring your own bowls with cover along, and pack your friends too,  then begin to point and order, keep an eye on him sha o, make hin no run.

Me and friends were super at this while at University , the next time you see him just flash a smile with a slow hiiiiiii,   he too go get am say nothing for him.

horny4u:
I have never been through tough times or wanted , but some guys think they are smart and start toasting you and your roommate simultaneously or you simply do not like the guy and want to have some fun at his expense,    Life is not always fair.
What is traumatic about going to tantalizer with a bowl with your friends , the only trauma there is for the guy in question. ( You are not sleeping with him or even sniffing his neck !)

GAR3TH:
Video of the united states 'persecuting Muslims'

[flash=420,345]
https://www.youtube.com/watch?v=-LR74atT3Fw?version=3&hl=en_US&rel=0[/flash]

Pictures of UN 'persecuting Muslims'

https://i54.tinypic.com/30l2g52.jpg

henry101:
Yeah I know He will prove critics wrong by contesting again in 2015.

BTW those underage voters packed up in the north voted CPC,why is He or his supporters not condemning such acts?

seanet02:
No, i am from OBO